"As far as the application of unilateral sanctions against Russia is concerned... The very idea of raising this issue causes indignation," Russian foreign ministry's human rights envoy Konstantin Dolgov said in a statement.
"Unfortunately, instead of a deep and objective review of why human trafficking is growing, including on the territory of the United States, the report's authors are once again using unacceptable methodology under which governments are ranked based on the political sympathies or antipathies of the US State Department," said Dolgov.
The move could trigger cuts in non-humanitarian and non-trade US aid.
Dolgov noted that the decision could jeopardise Moscow's future relations with Washington.
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"This shift would contradict the goals of the further positive development of Russian-US relations and constructive agreements reached by the Russian and US presidents during their recent meeting in Loch Erne," Dolgov said in a statement.
US President Barack Obama and Russian leader Vladimir Putin met on the sidelines of the G8 summit in Northern Ireland earlier this week.
Obama is expected to determine whether to enact any sanctions against the three nations in September.